Overview

• If enacted, the 3.5% federal levy on transfers sent by non-US citizens would take effect January 1, 2026.
• The tax would raise total transfer costs from the US to nearly 10%, making it the most expensive G7 destination for remittances.
• Mexico, Nigeria, El Salvador and Gambia face projected losses of hundreds of millions in inflows and potential drops in gross national income.
• Payment-industry groups including Western Union and Visa have lobbied Congress, warning the levy could push funds into unregulated channels and heighten money-laundering risks.
• Critics say the charge amounts to double taxation on immigrant workers’ earnings and runs counter to the UN’s goal of cutting remittance fees below 3% by 2030.